Dollar Rebounds
As Central Banks
Dash Sales Fears

Euro and Yen Give Ground
As Asian Officials Back Up
Holdings of U.S. Currency

By

Hae Won Choi,

Seah Park and

Mary Kissel Staff Reporters of The Wall Street Journal

Updated Feb. 24, 2005 12:01 a.m. ET

Maybe it was all just a big misunderstanding.

Central bankers in South Korea and around Asia fought yesterday to reassure traders that they aren't about to dump their dollar holdings. Fears a day earlier that such a move might be imminent caused the U.S. currency to fall 1.4% against both the yen and the euro, roiling securities and commodities markets around the globe. Official denials helped stabilize the U.S. currency...